Mixed Reactions as Dangote Refinery Commences Nationwide Fuel Distribution

Nigerians and energy industry stakeholders have expressed mixed feelings as the Dangote Refinery officially begins nationwide fuel distribution using its Compressed Natural Gas (CNG) trucks today, Monday, September 15, 2025.

Over the weekend, hundreds of the refinery’s branded trucks were already sighted on Nigerian highways, particularly along the Lekki–Epe Expressway in Lagos State, signaling the start of what is expected to be a game-changing fuel delivery system.

The multi-billion-dollar refinery, valued at $20 billion, earlier revealed that it invested about ₦720 billion to procure 4,000 compressed natural gas trucks, though reports indicate that only around 1,000 trucks have been delivered so far.

According to the Dangote Group, the initiative is strategically designed to reduce retail fuel prices and is projected to save Nigeria a staggering ₦1.7 trillion annually in fuel distribution costs.

New Fuel Price Template

Last Thursday, the company rolled out its updated fuel pricing template, pegging the ex-depot price at ₦820 per litre. Retail pump prices, however, vary across states, ranging between ₦841 and ₦851 per litre.

While this development has been described as innovative, it has also generated disruptions and concerns in the downstream oil sector, with unions and marketers divided on its impact.

Stakeholders Voice Concerns

The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), which has been at loggerheads with Dangote Refinery over alleged anti-labour practices, described the fuel distribution plan as a “Greek gift” to Nigerians.

Similarly, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) criticized the initiative, insisting that Dangote’s free delivery cost structure for nationwide distribution is misleading.

In contrast, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has openly supported the scheme, urging members to take advantage of the opportunity by registering with the refinery.

Rising Concerns Over Dangote Truck Accidents

The deployment of thousands of trucks comes amid increasing road accidents involving Dangote vehicles nationwide.

In one tragic incident, Ruth Otabor, sister of Big Brother Naija Season 7 winner Phyna, lost her life after being crushed by a Dangote truck in Auchi.

Over the weekend, several passengers sustained injuries when a Dangote truck collided with a Benue Links passenger bus along the Lagos–Kogi expressway.

Expert Opinion: Between Innovation and Monopoly Risks

Speaking with LMSINT MEDIA, Professor Wumi Iledare, an Emeritus Professor of Petroleum Economics, noted that the refinery’s move into CNG-powered trucking is innovative and could potentially lower costs, promote gas utilization, and reduce carbon emissions.

However, he raised concerns over the danger of unchecked dominance, stressing that Dangote’s control of both refining and transportation could stifle competition if not properly regulated.

“Dangote’s foray into CNG trucking is commendable and aligns with global trends in vertical integration. However, the risk of a monopoly is high if a strong regulator is not in place,” Prof. Iledare explained.

“Safety remains another pressing issue. Nigerians are still mourning Ruth, Phyna’s sister, who was killed by a Dangote truck in Auchi. Added to this are concerns about nationwide traffic gridlock as thousands of trucks take to the highways.”

He emphasized that while innovation should be encouraged, government agencies must enforce safety standards, strengthen regulation, and protect fair competition to ensure that convenience and affordability are not overshadowed by disruptions.